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What are the benefits of ADR ordinary shares to US investors?

April 26, 2017adr Benefits investors Shares

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What are the benefits of ADR ordinary shares to US investors?

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US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions. One of the main advantages of ADRs is the facilitation of diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.